Fast Track Law - Andrew Yuill

We have now heard about Siren’s mining proposal, and about our environment. The central thing that links them is the law, which states the terms and conditions on which Siren will be invited. First though, I will show why we need to get those terms and conditions right.

 

 

In May 2023, Minto Metals announced without warning that it had ceased operations at its mine site. The Yukon Government remains responsible for the mine’s remediation. This is expected to take three years and cost roughly $95 million, around $20 million more than the financial security paid by Minto Metals. This is not some impoverished failed state, it’s Canada.

 

 

 

Third world mining looks more like this. The headline was “More than 50 Presumed Dead After DRC Mine Collapse”

 

But to return to Canada, the Minto mine is unfortunately not so unusual. Here is Wolverine Mine.

A judge described it as an “irresponsible mining venture” that has forced the Yukon to spend tens of millions of dollars in emergency environmental protection measures since Yukon Zinc began neglecting the property in 2017 before fully abandoning it and declaring bankruptcy.

 

 

 

And here is Faro mine. Production ceased in January 1998, followed by the bankruptcy of the Anvil Range Mining Corporation. Cost of clean-up is estimated at close to a billion dollars.

 

 

 

It continues to the present. Last month a cyanide-leach heap collapsed at Victoria Mine. The slide involved about four million tonnes of material according to Victoria Gold, half of which left containment. Victoria Gold has stopped mining at the site.

 

 

 

You are perhaps thinking ‘Ah yes, but we live in NZ’. We have our own examples though.

The Tui Mine was abandoned in 1973. The clean-up was completed in 2013 by the government at a cost of $22.5 million. A major issue was instability of the tailings dam.

Ah yes but that only happened, in the past, didn’t it? However, Coromandel Watchdog comments: Waihi Gold’s Martha Mine has generated tailings approximately 300 times larger than those at the 
Tui mine … If just 10% of the Martha mine tailings require similar remedial work in the future, the cost to taxpayers would be approximately $500 million.

 

 

So now we can come back to Siren’s proposal.

Let’s assume Siren’s directors are decent honest people, that they will keep the law of countries where they operate and they have a duty to act in the interests of their shareholders. What that implies is that they won’t be using up company money on exceeding the environmental requirements we set for their mine operation. Agree or disagree, but that’s the law.

 

Our requirements are currently set through the Resource Management Act. It’s been argued over and amended for more than 30 years, it has got very complicated, and in many quarters is not much loved. However, it does allow input from people who will be affected by an application – publicly through the courts.

The fast track bill does away with all that. It simply bypasses the RMA. In its current form, the bill would allow three ministers
to green-light projects, even if an expert panel advised against them and they had previously been denied consents by the courts.

 

 

 

Chief Ombudsman Peter Boshier said “New Zealanders must get the opportunity to consider the evidence given to ministers. Unchecked executive powers could put the country on “a slippery slope.”

 

Finally, let’s consider how this applies to Siren’s proposal for the Takaka catchment. Their exploration licences will expire, and they must either abandon the project or apply for a mining licence this year. The Water Conservation Order that protects Te Waikoropupū and its aquifer operates through the RMA, so the coming fast track legislation will disregard it. You have seen this afternoon the complexity of gold extraction and mine waste disposal. Also, the consequences of getting mine waste disposal wrong. The Fast track bill requires an applicant to explain their project to a four-person expert panel, who will then recommend accepting or declining it, and what conditions should apply.

Several local people assembled questions and put them to Paul Angus of Siren. Two of the questions asked:

  • “You expect Siren will apply for a mining licence around September this year. In view of the uncertainty around even the key matter of whether Siren will create an open pit, how will the expert panel under fast-track be able to assess the likely effects of Siren’s proposal?”
  • “Can you rule out that Siren or any company it sells on the consents to will ever use cyanide extraction in Golden Bay, or does that remain a possibility?”

He replied:

“As I said in the radio interview, we are largely still in the exploration phase and have not completed any design work so can’t answer these questions.”

So, things seem pretty chaotic. Siren must apply for a mining licence but doesn’t yet know what it wants to apply for; the fast track hasn’t even become law yet but the govt has already invited Siren to apply under it.

What we can do is keep informed, defend our water and our catchment with a passion, and let the MPs in Wellington know what we think about it.